Effects of Web-based Customer relationship management on Customer Satisfaction: A Structural Equation Modeling Analysis

Abstract

This study addresses the effect of e-customer relationship management (e-CRM) practices on online customers’ satisfaction with their experience in interacting with the company websites. Recognizing the importance of maintaining a healthy relationship with customers, companies are actively seeking ways to enhance the customer value of their offerings through relationship marketing. Since effective managing of customer relationship essentially involves managing customer information flow, Internet technologies have become an important element of a firm’s e-CRM program. The company website is functioning as the focal point of contact for interacting with existing and prospective customers. An important concern is how the company website affects customers’ overall perception of the website. Using the concepts of Internet-mediated market orientation in marketing and user satisfaction in information systems, this study analyzes causal as well as correlation relationships between e-CRM practices and online customer website satisfaction. Based on the primary data collected in Taiwan, the study found that e-CRM practices positively impact online customers’ website satisfaction through their perception of the website’s customer orientation.